Determine the most highly concentrated retail industries

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a. Using the Concentration Ratios of the United States Census Bureau:

b. Determine the 4 most highly concentrated retail industries in the U.S. as of 2002 based upon the 4 and then 8 largest firms.

c. Next, find the same information for Manufacturing and also included the Herfindahl-Hirschman Index.

d. In which industries among the top 5, would a merger that increased the HHI by at least 50 or more points trigger a challenge from the Justice Department? Please explain why?

i. Why is this information important in the Five Forces model?

b. Do the participants in the following pay off matrixes have a dominant strategy? Is a Nash equilibrium present? Be sure to explain your reasoning.

1.
i. In the first matrix, Doug and Amy are debating the merits of a capital improvement in their companies' production facilities for bicycle seats; however, to take full advantage of the new production technology requires that Doug and Amy increase their respective market shares. Unfortunately, the market has not been growing much lately and if Doug increases his market share, it will likely have a negative effect on Amy's company's market share. The true is the same in reverse.

ii. The second matrix is exhibits the payoffs from the effects of increased advertising by Amy's and Doug's companies. Doug's company advertising has not been very effective, but he will enjoy some positive coat tail effects on the bicycle seat market as the result of increased advertising by Amy's company.

Reference no: EM13765459

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